Compliance Bricks and Mortar for May 19

These are some of the compliance-related stories that recently caught my attention.


Cybersecurity: Ransomware Alert from SEC’s OCIE

Starting on May 12, 2017, a widespread ransomware attack, known as WannaCry, WCry, or Wanna Decryptor, rapidly affected numerous organizations across over one hundred countries. Initial reports indicate that the hacker or hacking group behind the attack is gaining access to enterprise servers either through Microsoft Remote Desktop Protocol (RDP) compromise or the exploitation of a critical Windows Server Message Block version 1 vulnerability. Some networks have also been affected through phishing emails and malicious websites. [More…]


Personal Liability for Compliance Officer in MoneyGram Settlement: Powerful Motivator or Chilling Deterrent? by Erin Schrantz, Anouck Giovanola, and Justin Spiegel

On May 4, 2017, the U.S. Attorney’s Office for the Southern District of New York (“SDNY”) and the Financial Crimes Enforcement Network (“FinCEN”) announced the settlement of civil claims brought under the Bank Secrecy Act (“BSA”) against the former Chief Compliance Officer of MoneyGram International, Inc. (“MoneyGram”), Thomas Haider, stemming from MoneyGram’s failure to implement and maintain an effective anti-money laundering (“AML”) program or to timely file suspicious activity reports (“SARs”).[1]  The settlement represented the resolution of the first-ever suit filed by the federal government against an individual compliance officer in the finance industry,[2] and is likely to add fuel to increasing anxiety regarding the Department of Justice’s (“DOJ”) willingness to hold corporate executives liable for compliance failings.[More…]

McConnell Is Pessimistic Congress Will Overhaul Dodd-Frank by Elizabeth Dexheimer in Bloomberg

Senate Majority Leader Mitch McConnell said he’s pessimistic Congress will overhaul the Dodd-Frank Act because he doubts Republicans can secure enough Democratic votes to make major changes to the sweeping legislation that tightened oversight of banks after the financial crisis.

“I’d love to do something about Dodd-Frank, particularly with regard to community banks but that would require Democratic involvement,” Kentucky’s McConnell told Bloomberg News in an interview Tuesday. “I’m not optimistic.” [More…]


Household Borrowing in Historical Perspective by 

Today, the New York Fed’s Center for Microeconomic Data released its Quarterly Report on Household Debt and Credit for the first quarter of 2017. The report shows a rise in household debt balances in the quarter of $149 billion, the eleventh consecutive quarterly increase since the long period of deleveraging following the Great Recession. As of March 31, 2017, household debt balances stood at $12.73 trillion, surpassing the previous 2008 peak and hitting a level 14 percent above the trough seen in the second quarter of 2013. With this report’s release, we’re adding two new charts which show both early and severe delinquency trends by loan product type. The report and the analyses presented here are based on the New York Fed’s Consumer Credit Panel (CCP), which is sourced from Equifax credit report data. [More…]


The Case for Federal Preemption of State Blue Sky Laws by Rutheford B. Campbell, Jr.in The CLS Blue Sky Blog

The pernicious effect of state registration rules is easily and vividly demonstrated. For example, a business that announces its offering by posting the offering information on its website or advertising its offer in a widely distributed publication would likely be subject to the separate and individual registration requirements of each of the 50 states. In each state, therefore, the issuer would be required either to file a registration statement with the state or qualify for one of the state’s exemptions from its registration requirements. [More…]


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